North Carolina Down Payment Assistance Programs

Online Payments - The North Carolina Housing Finance Agency got two great plans for first-time Home Buyers. These systems will be the Down Payment Assistance Program along with the Mortgage Credit Certificate.

Should you meet the requirements for one of these programs and you purchase a house and December 1, 2009, you can even qualify for the $8,000 tax credit just enacted into law in the Federal Economic Stimulus Plan.

First, who's a first-time Home Buyer? A First Time Home Buyer is someone who has not owned a house in the past three years. Here is the exact same qualifying definition for the $8,000 tax credit.

A Mortgage Credit Certificate (MCC) is a federal tax credit to assist home buyers with moderate and low incomes. All home owners can claim an itemized deduction for mortgage interest.

You can claim 20% of the interest you pay on your mortgage as a credit on your own federal income taxes if you qualify for the MCC. You are able to save as much as .

You will be able to combine this if you do qualify for the MCC, for 2009. This might reduce the tax liability of a buyer's .

Household income is defined as the “gross income of the mortgagor and any individual anticipated to live in the dwelling who's 18 years old or older.”

The income and house price limits that apply in Durham Orange and Chatham Counties are given below.

MCC Income Limits 1 Man $61,500 2 Men $61,500 3 Men $70,500 4 Men $70,500

MCC Sales Price Limits New Home $220,000 Existing Residence $210,000

Who Qualifies for Down Payment Assistance?

The buyer only has to pay and the load would pay around .

This program has more rigorous income limitations than the MCC plan summarized above. Like the MCC application, it could be used in combination with all the new $8,000 tax credit on house purchases between December 1, 2009 and January 1, 2009. The deposit help, however, cannot be used in combination with all the MCC. That is an either or scenario.

The income and house price limits that apply in Orange, Durham and Chatham Counties are given below.

Down Payment Assistance Income Limits

1 Individual $39,950 2 Persons $45,650 3 Individuals $51,350 4 Individuals $57,050

Down Payment Support Sales Price Limits New House $210,000 Existing Dwelling $210,000